The Federal Deposit Insurance Corp. has announced
five more loan auctions, covering approximately $195 million in assets from
three failed banks.
All of the assets have the dubious distinction of
originating with banks that were so far gone when regulators intervened that no
other institutions were willing to take them over.
Three of the auctions feature assets from the
failed Barnes Banking Co. of Kaysville, Utah, which was closed by the Utah
Department of Financial Institutions on January 15. The
Federal Reserve Board had issued a prompt corrective action orderd against
Barnes just four days earlier.
The FDIC created the Deposit Insurance National
Bank of Kaysville to resolve the bank's business after it failed to find a
buyer. The three auctions--all with
April 6, 2010 bid dates--consist of approximately $68.5 million in various
performing and non-performing loans.
The assets are being marketed by the advisory firm
of Garnet Capital Advisors, which will also conduct the sales.
The largest of the Barnes-related auctions consists
of $46.7 million in performing and nonperforming commercial and consumer loans,
divided into three groups. The first
pool consists of 248 commmercial and industrial loans totaling nearly $26
million. According to the sales announcement, 73 percent of the pool is
performing.
The second pool comprises 34 Small Business
Association 504 Loans amounting to nearly $17.7 million. The sale announcement
said 92 percent of that pool is performing. The third and smallest pool contains 520 Consumer Loans with
a balance of $3.12 million. Seventy-four
percent of that pool is classified as performing.
The next-largest Barnes auction consists of 86
performing and nonperforming agricultural loans. As might be expected, the 86 Loans are performing at a very
low level: about 15 percent. The current outstanding balance is
about $20.5 million.
The final and smallest Barnes auction includes
nearly $1.3 million in credit card accounts. The 1,578 accounts are performing at 93 percent. The FDIC said
all of those accounts will be bid in a single pool.
The fourth FDIC auction features assets from the failed Silverton Bank of Atlanta, which was shuttered by the Office of the Comptroller of the Currency on May 1, 2009. Silverton was a commercial bank that did not deal directly with consumers but provided services to its client banks.
The FDIC created the Silverton Bridge Bank N.A. to help
client banks transition their accounts to other lenders with as little
disruption as possible.
The FDIC's loan sales Web page states only that the Silverton portfolio contains about 110,000 credit card accounts with a balance of $118 million. The Silverton sale also has an April 6 bid date, but the assets are being marketed by First Annapolis Capital Inc.
The
FDIC offered no information on the ratio of performing to nonperforming
loans. First Annapolis said on
its Web site that approximately 53 percent of the portfolio are consumer credit
cards and approximately 47 percent are business cards business. It also claims that the average credit bureau score is about
736.
The fifth and final FDIC auction is a mix of commercial
and industrial loans and consumer loans from the failed Citizens State Bank, of
New Baltimore, Mich., which was shut down by the Michigan Office of Financial
and Insurance Regulation on Dec. 18.
The FDIC subsequently formed the Deposit Insurance
National Bank of New Baltimore when it failed to find a purchaser for the
institution. The loans will be bid
in two pools: the first consists of 52 commercial and industrial loans in
Michigan totaling $5.7 million; the second consists of 94 consumer loans in
Michigan with a balance of about $736,000.
The sale, marketed by Eastdil Secured, has a March
23, 2010 bid date. The FDIC
offered no information on the ratio of performing to nonperforming loans. Nor
did Eastdil Secured on the public sections of its Web site.
BailoutSleuth will continue to track these auctions
and sales as part of our coverage of the upheaval in the financial
industry.
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